An anonymous director reports

IANTHUS ANNOUNCES RESTATEMENT OF THIRD QUARTER 2023 FINANCIAL RESULTS

In connection with the preparation by iAnthus Capital Holdings Inc. of its consolidated financial statements for the fiscal year ended Dec. 31, 2023, the company's management identified an error related to its financial reporting process in connection with an intercompany consolidation of two wholly owned subsidiaries and in the valuation of inventory, both resulting in an overstatement of inventory in its previously issued unaudited interim condensed consolidated financial statements for the three and nine months ended Sept. 30, 2023, as contained in the company's quarterly report on Form 10-Q for its fiscal quarter ended Sept. 30, 2023, filed with the Securities and Exchange Commission (the SEC) on Nov. 9, 2023, and its corresponding management's discussion and analysis filed publicly on SEDAR+. This error resulted in an overstatement of "inventories, net" and "accrued and other current liabilities" on the unaudited interim condensed consolidated balance sheet as of Sept. 30, 2023, and an overstatement of "income tax expense," and an understatement of "cost and expenses applicable to revenues," on its unaudited interim condensed consolidated statements of operations for the three and nine months ended Sept. 30, 2023. This error has no impact on the cash balance as of Sept. 30, 2023, and results in no net change in cash flows for the nine months ended Sept. 30, 2023.

On Feb. 13, 2024, the audit committee of the company's board of directors concluded, after discussion with the company's management and its advisers, that the third quarter 2023 interim financial statements were materially misstated due to this error. As a result, the third quarter 2023 interim financial statements and accompanying earnings release should no longer be relied upon. The company anticipates making the appropriate adjustments in an amendment to its quarterly report on Form 10-Q filed with the SEC on Nov. 9, 2023, which will include restated unaudited interim condensed consolidated financial statements for the three and nine months ended Sept. 30, 2023, and any other appropriate revisions no later than Feb. 29, 2024. The restated third quarter 2023 interim financial statements will also be publicly available on the company's SEDAR+ profile. The company will report these errors as material weaknesses and its intended remediation efforts within Item 4. Controls and procedures in the amended Form 10Q for its fiscal quarter ended Sept. 30, 2023.

The company's management and audit committee have discussed the matters disclosed in this release with its independent registered public accounting firm, PKF O'Connor Davies LLP.

About iAnthus Capital Holdings Inc.

iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States.

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